From April, disabled people will gain greater choice in using their flexible funding while receiving the same level of support as today, Minister for Disability Issues Louise Upston has announced.
“The steps we have taken since 2024 to stabilise the disability support system have been successful,” Upston said. “Because of this, we can now confirm two things: the current purchasing rules will be removed in April, and people’s flexible funding allocations will stay exactly the same as they are now.”
“This means we no longer need to look at what people spent in previous years to set new budgets.”
Upston added that people will receive additional support, guidance, or coaching to manage their flexible funding, customised to their individual circumstances.
“Flexible funding must still be spent in line with people’s plans; a few things will need pre-approval, and people must stay within their allocated budgets.”
“However, they’ll have more choice and control over the supports that work for them, including respite options for carers.”
“These changes reflect feedback from the disability community last year and the recommendations of the 2024 Independent Review.
The 2024 Independent Review revealed unsustainable spending growth in disability support services, unclear eligibility criteria for flexible funding, and an unfair postcode lottery affecting disabled people nationwide.
“Since then, we have made real progress in stabilising services,” Upston said.
“DSS has strengthened financial controls, budgets and oversight for NASCs, Enabling Good Lives sites and equipment providers; fixed longstanding issues with residential care pricing; and improved the way people’s needs are assessed and funding for support is allocated.”
Upston noted that the New Zealand government allocated significant new funding in Budget 2025, including $1 billion to address demand and inflation pressures.
“We can now restore flexibility and choice without creating uncertainty.”
“Disabled people can be confident their support will continue.”